A Phoenix data center project is moving forward even after recent zoning changes. It shows that power, location, and land use still matter to developers and investors. Read the original article for more details.
Key takeaways
- GI Partners acquired a 5.43-acre site near 7th Avenue and Grant Street in South Phoenix for $14.72 million.
- The site sits next to an APS substation, a key factor for data center development.
- The city approved a waiver after a Prop 207 compensation claim, despite new zoning limits.
GI Partners Acquires South Phoenix Site for $14.72 Million
GI Partners acquired a 5.43-acre site near 7th Avenue and Grant Street in South Phoenix for $14.72 million. The firm is advancing plans for a potential data center on the property. For buyers tracking commercial real estate opportunities in Arizona, the deal is a useful example of how strategic land is being priced and positioned.
Why the APS Substation Matters for Data Center Development
The property sits next to an APS substation, a key factor for data center development. Power access is often one of the first things developers look at when evaluating a site. The previous owner, LKY Development, had also worked with APS on expanding the substation to support future development. That kind of groundwork can make a site more attractive to a future user.
How Phoenix’s New Zoning Rules Affect the Deal
The City of Phoenix adopted new zoning rules limiting where data centers can be built. Even so, the city approved a waiver for this property following a Prop 207 compensation claim. The outcome shows that zoning and legal pathways can change what is possible on a specific site, so investors should look closely at entitlement history before they buy.
What This Means for Developers and Investors
The transaction reflects the factors shaping the Phoenix data center market: power availability, zoning, and strategic site location. Acreage alone does not decide value. Nearby infrastructure, land use approvals, and regulatory history can matter just as much. Anyone buying or selling industrial and land properties in the Valley should weigh these factors early.
Talk to SVN | Desert Commercial Advisors
Thinking about land or industrial property in Arizona? SVN | Desert Commercial Advisors is a full-service commercial real estate brokerage based in Arizona. Contact our team to talk about site selection, land use, and market positioning.
